There have been many reactions and sentiments hovering around the upcoming Ethereum update labeled the merger. Different presentations of opinions invade the crypto space on an individual and institutional basis. One of the significant displays was the massive accumulation of Ethereum tokens. Many believed that the price of Ether would increase due to the merger.
The Ethereum network has seen higher activity as participants bought more ETH over the past few weeks. So, July was going up one for the cryptocurrency. As a result, the price of Ethereum rose significantly even as the broader crypto market made a gradual ascent. As a result, Ethereum became one of the top gainers in early July.
But the sudden uptrend seems to be short-lived. As the crypto market sees the bulls exit, Ether is no slouch. The past few days have been a struggle for the Ethereum token. ETH price trend data shows a decline over the past four days.
Currently, the market capitalization of the second largest cryptocurrency in the world stands at $225 billion. ETH is trading at around $1,700, with a significant loss over the past 24 hours. Recall that the token increased its value by around 100% in early July. But since the beginning of this week, Ethereum has lost value with its price drop.
The news of the upcoming merger was the power source for the token to climb. According to a digital data scientist from Cowen Digital, David Krogerthere is no longer any will on the part of institutional investors.
He mentioned that many have been asking to know the odds and technicalities that come with the merger. Additionally, Kroger said some people took advantage of the events surrounding the merger. Therefore, the price drop could be related to this.
Ethereum miners will succeed with detractor role
With the subsequent drop in the price of ETH, one could wonder if the euphoria surrounding the merger was over. The merger still receives strong support from the Ethereum community. But ETH miners play a detrimental role against the merger. They plan to hard fork the Ethereum blockchain after the merger along with their continued mining operations.
Reacting to the situation, Vitalik Buterin, the co-founder of ETH, disapproved of such a move. He said that the Ethereum team will no longer support the Ethereum PoW version once the transition to PoS is complete.
The broader market is taking careful note of all the events surrounding the transition. According to Arthur Hayes, CEO of BitMEX, traders temporarily hold ETH once the merger fails.
Such a failure would create a negative reflexive link between ETH’s deflation level and its price. Additionally, he mentioned that the success of the merger could potentially drive up the price of ETH.
Featured image from Pixabay and chart from tradingView.com